What it means to be a fiduciary

Plan sponsors have four primary fiduciary responsibilities. 

1. Prudent Person Rule:  Fiduciaries must carry out all duties with the care, skill, prudence, and diligence that a prudent person acting in a like capacity and familiar with such matters would use.
2. Diversification Rule:  Fiduciaries should diversify plan investment alternatives to potentially minimize the risk of large losses unless it would be imprudent to do so.
3. Exclusive Benefit Rule:  Fiduciaries must discharge their duties for the express purpose of providing plan benefits to participants and their beneficiaries and defraying reasonable administrative expenses. 
4. Plan Document Rule:  Fiduciaries must discharge their duties in accordance with the terms and provisions of the plan documents and other instruments governing the plan, such as trust agreements, except when they violate ERISA